### Qatar Airways Divests from Cathay Pacific: A Strategic Exit After Eight Years - Qatar Airways has announced its decision to sell its entire stake in Cathay Pacific Airways, valued at approximately $896 million. This marks the end of an eight-year partnership between the two airlines, which began in 2017 when Qatar Airways acquired a 9.57% stake for around $662 million during a challenging period for Cathay Pacific, characterized by financial losses and layoffs due to increased competition [https://apnews.com/article/qatar-cathay-pacific-airways-stake-sale-dd016f502e37b51803ea01ecb8e0b3b3]. - The sale comes as Cathay Pacific has recently reported a significant turnaround, posting a $1.2 billion profit in the last fiscal year, which has positively influenced its stock performance [https://apnews.com/article/qatar-cathay-pacific-airways-stake-sale-dd016f502e37b51803ea01ecb8e0b3b3]. ### Breakdown of the Stake Sale and Its Implications 1. **Details of the Sale**: - Qatar Airways will sell its 9.57% stake in Cathay Pacific through a share buyback agreement, with Cathay repurchasing the shares at HK$10.8374 each, which is about a 4% discount from the closing price on November 5, 2025 [https://www.businesstoday.com.my/2025/11/06/qatar-airways-exits-cathay-pacific-with-us897-million-stake-sale]. 2. **Market Reaction**: - Following the announcement, Cathay Pacific's shares rose by over 4% on the Hong Kong Stock Exchange, reflecting investor confidence in the airline's future prospects [https://www.freemalaysiatoday.com/category/business/2025/11/06/qatar-airways-to-sell-all-of-its-cathay-pacific-stake]. 3. **Strategic Context**: - This divestment aligns with Qatar Airways' broader strategy of optimizing its investment portfolio, allowing it to focus on other opportunities while Cathay Pacific aims to expand its operations post-pandemic [https://www.worldwidenews.ca/qatar-airways-exits-cathay-pacific-in-strategic-share-sale]. ### Supporting Data and Market Insights - **Financial Performance**: - Cathay Pacific reported a profit of **$1.2 billion** in the last fiscal year, a significant recovery from previous losses [https://apnews.com/article/qatar-cathay-pacific-airways-stake-sale-dd016f502e37b51803ea01ecb8e0b3b3]. - **Share Price Movement**: - Cathay's stock price increased by **4%** following the announcement of the stake sale, indicating positive market sentiment [https://www.freemalaysiatoday.com/category/business/2025/11/06/qatar-airways-to-sell-all-of-its-cathay-pacific-stake]. - **Investment History**: - Qatar Airways initially invested **$662 million** in 2017, highlighting a **35% increase** in value from the original purchase price to the current sale price [https://www.indexbox.io/blog/qatar-airways-sells-entire-96-cathay-pacific-stake-in-896-million-deal]. ### Conclusion: A Strategic Shift for Qatar Airways and Cathay Pacific - **Key Takeaways**: 1. Qatar Airways has successfully divested its stake in Cathay Pacific for **$896 million**, marking a strategic exit after eight years of partnership. 2. The sale reflects Cathay Pacific's strong recovery and future growth potential, as evidenced by its recent financial performance. 3. The market has responded positively to the news, with a notable increase in Cathay's stock price, indicating investor confidence in the airline's direction. This strategic move not only allows Qatar Airways to optimize its investment portfolio but also positions Cathay Pacific for further growth as it continues to recover from the impacts of the pandemic [https://www.worldwidenews.ca/qatar-airways-exits-cathay-pacific-in-strategic-share-sale].